Car title loans are a type of secured loan that lets people borrow money based on the value of their car. The borrower gets their car title and lien signed over to the lender, who then takes possession of the vehicle as collateral for repayment. Lenders can offer loans with higher interest rates than other types of credit, and sometimes they even charge a monthly fee for insurance on the borrower’s vehicle.
Title loans in Canada are a form of loan secured by the vehicle. While the lender typically holds the entire title to the car, they only need a lien on the title in order to obtain a loan.
Step to get title loan Canada :
- The applicant must be a resident of Canada and have a valid driver’s license.
- He/She should also be able to prove the payment history by producing an account statement or a pay stub showing the regular debit from their bank accounts. Some money lenders don’t do debt Check
- The applicant must be able to prove that they have a job and source of income. However few loan companies don’t ask for job requirements.
- The borrower is required to provide a vehicle that can be used as collateral for the loan.
How to apply for a title loan in Canada ?
Money lenders will ask you to fill out a quick and simple application form. When submitting the application, The Loan Company may require proof of income for each member of the household. The applicant may also be required to supply their driver’s license and vehicle registration/ownership documents in order to verify ownership.
The entire process is simple and secure. Once approved, money can be deposited into your checking account within one business day after cash pickup.
Benefits of Title loans in Canada :
If you are a first time applicant for car title loans, the title company will verify that the auto company is owned by you. It is also important to find out whether the company has filed bankruptcy or not. To avoid such problems, it is better to ask for confirmation from a debt consolidation agency. However, Title loans continue to offer lucrative interest rates and flexible repayment plans. These benefits have made it popular among many borrowers who want an unsecured source of cash. The companies don’t take any interest in your credit score and they are highly recommended by debt consolidation agencies for those who need an unsecured loan in Canada.
Why title loans to get quick money ?
Title loans are a quick and easy way to get cash to complete the down payment on a new car. The cars can be used as collateral for the loan and because of that, the money lenders have no doubt about your ability to repay them.
Title loans are also regarded as a great way to use your vehicle as collateral so you can gain access to a high-interest unsecured loan. When compared to other types of credit loans, it is an excellent source of financing for those who have not gained access to credit in the past.
The entire process is simple and secure; once approved, money can be deposited into your checking account within one business day after cash pickup.
No Job Requirement loan
Title loans in Canada are less complicated than most other types of loans; they do not require any kind of work details from the borrower. Because the title company does not ask for any other information, you are able to apply online without providing your Social Security number, proof of income, or proof of assets. All that is needed to qualify is a valid driver’s license and your vehicle title.
APR :
Depending on the lender, interest rates for title loans Canada can be as high as 30% to 300%. Know the interest rate before you apply so you know how much you will have to pay. When considering a loan with a high interest rate, also consider that it will take longer than expected to repay it if your monthly payment is greater than what you can afford.
Can I get a car title loan if I’m still paying off my car loan?
Many people are wondering if they can get a car title loan even if they have an outstanding auto loan. In most cases, the answer is No. The Canadian Department of Transportation requires only that you be current on your current car loan before you are approved for a new one. However, there are some lenders who will require a guarantor in order to give out the title loans Canada.
How much money can I borrow with a title loan?
To get the most amount of money with a title loan, you will need to be borrowing against a vehicle that is worth the highest amount. The less amount you are paying on your current auto loan and your credit rating will also have an impact on how much you can borrow. If you have a high credit score, it will not be difficult to borrow a large sum with the title loans Canada.
Difference between a car loan and a title loan?
There are a couple of differences between a car loan and a title loan.
The first difference is the fact that car loans will normally be secured by the equity of the vehicle, while a title loan will not. Second, when you apply for a title loan, you will need to supply proof of ownership of your vehicle. If your vehicle is “garage kept,” meaning it is only driven in your yard on special occasions and not owned by you personally, you will have to document this from somebody who does own it. Are title loans safer than bank loans?
Many people wonder if their title loans are safer than bank loans. There is no reason to be concerned because the title companies will make no inquiries about your financial status and they will not report you to your credit bureaus. Because the interest rates for this type of loan are so high, you can afford to pay them back easily.
